Kraft Foods in search of buyer for Wedel

2010-03-17

Kraft Foods, which is planning to merge with Cadbury, has already begun to search for a buyer for Wedel, the prominent Polish sweets brand.
As a result of the merger, besides the rights to the Wedel trademark, Kraft has to sell also its franchise business (confectionery stores and chocolate bars) and the plants in Bielany Wroclawskie and Warsaw. It is believed that the whole transaction will be worth approximatelly PLN 600-800m (€150-205m).
The European Commission has established a date by which the company has to sell the Polish business. The date, however, has not been disclosed yet.
Among potential buyers is Maspex, the leading food producer in Poland. Also Jutrzenka, the Polish confectionery manufacturer which is in third position (after Kraft Foods with 21.3% and Cadbury with 12.5%) on the Polish sweets market, with a share of almost 10%, might be interested in acquiring Wedel. In addition, some of the private equity investment funds might also be willing to take over the Polish company.
As PMR reported on a previous occasion, the European Commission approved the acquisition of Cadbury by Kraft Foods on condition that the latter concern sells its chocolate businesses in Poland and Romania. After the merger, in Poland the two concerns would have a 59% share of the chocolate market.